Moody’s cuts Forbes Energy CFR to Caa1, debt to Caa2

Moody's Investors Service said it downgraded Forbes Energy Services Ltd.'s corporate family rating to Caa1 from B3, senior unsecured note rating to Caa2 from Caa1 and affirmed the SGL-3 speculative grade liquidity rating.

The outlook was changed to negative from stable.

"The downgrade reflects Forbes' elevated leverage metrics and weak interest coverage," Moody's vice president and senior analyst John Thieroff said in a news release.

"While Forbes has a measure of flexibility due to its low maintenance capital spending requirements, we expect weak demand for oilfield services to continue through 2016 and Forbes' cash flow metrics to remain pressured."

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